Question

Ferris Industries has $50,000 available to invest in new equipment. Management is considering four different equipment investments, each of which requires $50,000. The expected after-tax cash flow for each project has been estimated as follows:

REQUIREDA. Rank-order the projects in terms of desirability using the internal rate of return for each project as the criterion. Use Excel or a similar spreadsheet to calculate the IRRs.B. What other factors should be considered in making the decision of which investment tochoose?